Principles Of Economics 2e
2nd Edition
ISBN: 9781680920864
Author: Timothy Taylor, Steven A. Greenlaw, David Shapiro
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
Chapter 9, Problem 4SCQ
If Congress reduced the period of patent protection from 20 years to 10 years, what would likely happen to the amount of private research and development?
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If Congress reduced the period of patent protection from 20 years to 10 years, what would likely happen to the amount of private research and development?
Under which circumstances is patent protection most necessary?
Where information about technological improvements disseminates slowly
Where information about technological improvements disseminates rapidly
In a market with few sellers
Where the cost of research and development is very low
A patent effectively allows a firm to operate as a monopoly while the patent is in effect. Some people argue that the market
power created by patents harms consumers and shouldn't be granted. Others argue that patents are needed to encourage
research and innovation. You can read the article from Forbes to learn more about the history and policy surrounding
patents.
Classify the arguments below as either arguments for patents or arguments against patents.
Arguments For Patents
Arguments Against Patents
Answer Bank
prevents free-riding
encourages higher prices for consumers
prevents competition in the market
research results in a positive externality for society
leads to an ineffient level of production
Chapter 9 Solutions
Principles Of Economics 2e
Ch. 9 - Classify the following as a government-enforced...Ch. 9 - Classify the following as a government-enforced...Ch. 9 - Suppose the local electrical utility, a legal...Ch. 9 - If Congress reduced the period of patent...Ch. 9 - Suppose demand for a monopolys product falls 50...Ch. 9 - Imagine a monopolist could charge a different...Ch. 9 - How is monopoly different from perfect...Ch. 9 - What is a barrier to entry? Give some examples.Ch. 9 - What is a natural monopoly?Ch. 9 - What is a legal monopoly?
Ch. 9 - What is predatory pricing?Ch. 9 - How is intellectual property different from other...Ch. 9 - What legal mechanisms protect intellectual...Ch. 9 - In what sense is a natural monopoly natural?Ch. 9 - How is the demand curve perceived by a perfectly...Ch. 9 - How does the demand curve perceived by a...Ch. 9 - Is a monopolist a price taker? Explain briefly.Ch. 9 - What is the usual shape of a total revenue curve...Ch. 9 - What is the usual shape of a marginal revenue cuwe...Ch. 9 - How can a monopolist identify the...Ch. 9 - How can a monopolist identify the...Ch. 9 - When a monopolist identifies its profit-maximizing...Ch. 9 - Is a monopolist allocatively efficient? Why or why...Ch. 9 - How does the quantity produced and price charged...Ch. 9 - ALCOA does not have the monopoly power it once...Ch. 9 - Why are generic pharmaceuticals significantly...Ch. 9 - For many years, the Justice Department has tried...Ch. 9 - Intellectual property laws are intended to promote...Ch. 9 - Imagine that you ale managing a small firm and...Ch. 9 - If a monopoly firm is earning profits, how much...Ch. 9 - Return to Figure 9.2. Suppose P0 is 10 and P1 is...Ch. 9 - Draw the demand curve, marginal revenue, and...Ch. 9 - Draw a monopolists demand curve, marginal revenue,...
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Similar questions
- Which of the following are examples of how patents are not always a perfect way to encourage innovation: Group of answer choices patents in the U.S. do not last very long. it is very expensive to apply for a patent not every new idea can be protected with a patent or copyright.arrow_forwardQ60arrow_forwardAre products with patents a monopoly?Would it be expensive for another company to replicate?arrow_forward
- Is monopoly a good way to organize a market?arrow_forwardHow can countries control Monopoly power using public policy or law?arrow_forwardAll of the following are examples of intellectual property rights, except: Select the correct answer below: O patents O trademarks copyright laws O the public domainarrow_forward
- 1. A U.S. patent for the drug that most effectively treats HIV prevents other drug companies from producing a comparable substitute for patients. a. What is the effect of patent protection on the demand for a drug? How does the shape of the demand curve differ before and after a patent has expired? Support your explanation with a graph. b.Demand curves respond to preferences, income, and costs of substitute and complements. Discuss how these factors determine a country’s demand for HIV treatments. How might the effects of the patent protection differ across countries?arrow_forwardNeed this asap please and thank you. Not sure of my answer.arrow_forwardGive an example of a government-created monopoly. Is the creation of this monopoly necessarily good or bad public policy?arrow_forward
- All barriers to entry are not created through market conditions. Barriers to entry, such as patents, licenses, or international trade restrictions, may be government imposed. How do government–imposed barriers such as patents impact consumers and suppliers in these markets?arrow_forwardRent seeking: The following graph shows the demand, marginal revenue, marginal cost curves for a single - price monopolist that produces a drug that helps relieve arthritis pain.  Place a star symbol in the appropriate location on the graph to indicate the monopoly outcomes such that the dashed lines reveal the profit, maximizing price, and quantity of a single price monopolist. Then use the green rectangle to show the profits earned by the monopolist. Suppose that should the patent on this particular drug expire, the market would become perfectly competitive, with new firms, immediately entering the market with essentially identical products. Further, suppose that, in this case, the original firm will hire lobbyist, and make donations to several key politicians to extend its patent for one more year. The farm is prepared to spend up to -------$ million to extend its patent?arrow_forwardWhat Is Patents and Intellectual Property?arrow_forward
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